Changes To FRS 102 & The Impact On The Sports Industry
The recent amendments to FRS 102, the accounting standard in the UK and Ireland, could bring significant changes to the financial reporting landscape for sports organisations.
These updates, which take effect for reporting periods beginning on or after 1 January 2026 (with early adoption permitted), represent the most substantial revision to FRS 102 in a decade. The changes primarily affect revenue recognition and lease accounting, with far-reaching implications for how sports organisations structure contracts, report performance, and plan for the future.
Revenue Recognition: A New Five-Step Model
The amendments substantially align FRS 102 with IFRS 15, introducing a more complex five-step model focused on performance obligations:
Identify the contract
Identify performance obligations
Determine the transaction price
Allocate the price across obligations
Recognise revenue as obligations are fulfilled
For sports, this is particularly relevant in multi-year commercial contracts such as sponsorships, broadcasting rights, and bundled deals that include media, hospitality, and player appearances. Clubs will need to assess contracts carefully, as revenue may no longer be spread evenly but tied to specific performance obligations.
Lease Accounting: Bringing More onto the Balance Sheet
The changes also bring FRS 102 closer to IFRS 16, removing the traditional distinction between operating and finance leases. Most leases will now appear on the balance sheet, recognising both the asset and associated liability.
This will impact:
Profit & Loss → with lease costs replaced by depreciation and finance charges.
Debt Ratios → potentially affecting borrowing capacity and compliance with financial covenants.
Budgeting & Forecasting → requiring more detailed planning from finance teams.
Why It Matters for Sport
These updates could affect:
Profit & sustainability rules in football and other sports, where compliance depends on financial reporting.
Debt ratios and financing, as lease liabilities increase reported debt.
Commercial contracts, with new obligations requiring greater collaboration between finance and commercial teams.
Expert Insight from HaysMac
To help the sports industry prepare, Tom Wilson (Partner and Head of Sport at HaysMac) has broken down these changes in detail — explaining what they mean in practice, and why finance teams should begin preparing now.
About HaysMac
HaysMac is a London-based chartered accountancy and tax advisory firm, offering audit, assurance, taxation, and business advisory services. A trusted member of the Premier Sports Network Finance Network, HaysMac supports leading sports organisations, governing bodies, and clubs in navigating financial complexity and ensuring long-term sustainability.
About Premier Sports Network
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